Mr. Ibrahim Bashir is the CEO of Dillali, a financial records-keeping firm targeted at helping growing businesses in Africa save costs through digital record-keeping. He talks with Tony Ademiluyi about his transition from his training as a journalist to the world of entrepreneurship, the journey so far as well as its challenges, breakthroughs in fundraising from investors, and the vision for Dillali.
Enjoy the frank tete-a-tete:
Buzz Times: How did your study of mass communication prepare you for the challenges of entrepreneurship?
Ibrahim Bashir: I must admit that Mass Communication wasn't my initial choice of study in school, but it turned out to be a blessing in disguise. During my university days, the internet was still relatively new in Nigeria, and I had the privilege of access. This allowed me to conduct research and sell research documents to fellow students. It was during this time that I recognized the power of information and the potential for entrepreneurship. My course in Mass Communication provided a unique perspective on the power of the internet, including text, images, videos, and unlimited access to content. This pivotal moment sparked a mission within me to build businesses that revolved around the internet and technology.
Buzz Times: Before the success of Dillali, can you please tell us about your other failed and successful entrepreneurial ventures?
Ibrahim Bashir:Certainly! Entrepreneurship is a journey filled with ups and downs, and I've had my fair share of both successes and failures. One notable failure was my first attempt to set up a cyber cafe in Lagos, Nigeria, back in 1997, when I was still a teenager. We had done extensive research, secured an ISP for fiber-optic connectivity, and even had an investor lined up. However, due to heavy losses in his commodity trading business, the investor pulled out, leading to the project's demise. Despite this setback, I pressed on and eventually succeeded in launching our first company, a web design agency, which operated successfully for seven years before we decided to close it down. While we faced challenges, especially with clients taking me seriously due to my age at the time, we managed to complete significant projects with a young and ambitious team, and I'm immensely proud of our perseverance.
Buzz Times: Entrepreneurs talk about persistence as a trait for business success. From your experience, where should an entrepreneur draw the line between persistence and taking a walk?
Ibrahim Bashir: Indeed, persistence is a vital trait for entrepreneurs, but it's equally important to know when to reevaluate the path you're on. Making the decision to pivot or walk away from a venture is not a one-size-fits-all approach, as it involves various factors such as the product, market dynamics, policies, and the team.
In my view, the tipping point for considering a change lies in two main areas. Firstly, when persistent efforts fail to generate positive financial returns, it becomes essential to reassess the viability of the business. Cash flow is a critical indicator, and when it turns negative with no visible path to recovery, it's time to take a serious look at the situation.
Secondly, as an entrepreneur, your passion and interest in pursuing the idea play a crucial role. If you find yourself losing interest in the venture despite its financial success, it might be an indication that the business is no longer aligned with your long-term goals.
Deciding when to draw the line is indeed subjective and requires careful consideration. The key is to recognize when you've exhausted all reasonable strategies to generate revenue or cover costs and be willing to pivot or step away to explore new opportunities that align with your vision and passion.
Buzz Times: No thanks to the massive unemployment in Nigeria – about 41% according to a report by KPMG, how can we create a sturdy entrepreneurial culture in Nigeria from the cradle so as to save the next generation from poverty?
Ibrahim Bashir: Building a strong entrepreneurial culture in Nigeria is essential to empowering the next generation and combating the prevailing issue of poverty. To achieve this, we must initiate transformative changes in various aspects.
Firstly, our education system needs a fundamental shift. We must prioritize teaching practical skills and fostering creativity in students from an early age. By promoting entrepreneurial thinking and problem-solving, we can equip young minds with the tools to create their own opportunities.
Secondly, it's crucial to destigmatize failure. Failure is an inevitable part of the entrepreneurial journey, and we must embrace it as a valuable learning experience. Encouraging resilience and embracing those who have faced setbacks will motivate aspiring entrepreneurs to bounce back and keep innovating.
Lastly, the support system for startups needs enhancement. Introducing safety nets and fostering a conducive environment for experimentation and risk-taking will encourage more individuals to venture into entrepreneurship. By providing mentorship, access to capital, and simplified regulatory processes, we can foster a vibrant ecosystem that nurtures and sustains businesses.
While the road ahead is challenging, addressing these three key areas will lay a strong foundation for a thriving entrepreneurial culture in Nigeria, steering the next generation towards prosperity and reducing unemployment rates significantly.
Buzz Times: What gave you the idea to launch Dillali?
Ibrahim Bashir: The idea to launch Dillali was born out of my personal struggles as an entrepreneur. Back then, I couldn't afford a full-time accountant for my business, and existing web accounting apps were too complex for someone with little financial knowledge. I realized there was a gap in the market for a solution that catered to the unique needs of Nigerian businesses.
The turning point came during a conversation with a phone store owner in Abuja. I noticed he was still using paper invoices and inquired why he hadn't adopted a digital tool. His response mirrored my own challenges. This sparked an idea to delve deeper into the problem.
I conducted surveys with strangers, and after 37 responses, it became evident that I was onto something significant. Dillali was the answer to simplify financial management for African businesses like mine, providing them with a user-friendly, tailored solution to thrive in the digital age.
Buzz Times: Why is the focus of the financial record keeping of Dillali just on SMEs? Is there any futuristic plan to pivot to the big businesses as well?
Ibrahim Bashir: SMEs play a vital role in any economy, comprising 99% of registered businesses. These businesses face unique challenges, especially when it comes to financial management and access to finance. Many SMEs are owner-managed, where the business owner takes on multiple roles due to limited resources. As a result, financial record-keeping becomes a daunting task.
At Dillali, we are deeply committed to empowering African entrepreneurs to build sustainable businesses that can transcend generations. By targeting SMEs, we address the segment of the market with the most significant challenges and where we can make the most impact. Our vision is to help SMEs flourish by providing them with a user-friendly financial management solution tailored to their needs.
As for future plans, while our primary focus is on SMEs currently, we are always evaluating opportunities to expand and cater to a broader range of businesses. Our ultimate goal is to revolutionize financial management for businesses of all sizes across the African continent. As we grow and gain insights from our customers, we will continue to adapt and evolve our offerings to meet their needs effectively.
Buzz Times: Congratulations on your successful second fund-raising round which occurred in February this year; why has the funding for African startups experienced a significant 37% decline in funding as of June 2023?
Ibrahim Bashir: The decline in funding for African startups, which has also been observed globally with a 51% reduction, can be attributed to a confluence of factors. These include the impact of global inflation, recession forecasts, and rising interest rates, among other economic indicators. As a result, investor risk appetite is undergoing a significant shift, leading to a cautious approach in the investment landscape.
This trend is not unique to Africa alone, as it reflects a broader global slowdown in startup funding. The challenges posed by these economic conditions are expected to persist until at least 2024.
Buzz Times: What is the business model of Dillali? Is it sustainable?
Ibrahim Bashir: The business model of Dillali revolves around a Software-as-a-Service (SaaS) offering, where users subscribe and pay a periodic fee for access to our financial record-keeping platform. Additionally, we are actively exploring and testing other business models, including a freemium model with embedded financial services. This hybrid approach aims to strike a balance between meeting the needs of price-sensitive consumers in Africa and ensuring the sustainability of our business in the long term.
Buzz Times: Which African countries does Dillali plan to expand into and how does it hope to take advantage of the African Continental Free Trade Agreement?
Ibrahim Bashir: At the moment, Dillali is already making significant strides in various African countries, with users in Ghana and Cameroon, in addition to our main market, Nigeria. Our immediate focus is on consolidating our presence in Nigeria before venturing into other African countries. One of our key strengths is language localization, as the Dillali app is currently available in three major languages in Nigeria - Igbo, Hausa, and Yoruba. This localized approach enhances accessibility and usability for businesses across the country.
As part of our growth strategy, we aim to expand into other regions of Africa in the near future, with a particular interest in the East African market. We see immense potential in East Africa and believe our financial record-keeping platform can add significant value to businesses in the region. Moreover, with the implementation of the African Continental Free Trade Agreement (AfCFTA), which aims to foster trade and economic integration among African countries, Dillali stands to leverage this opportunity to facilitate cross-border transactions and support businesses in their regional growth ambitions. By fostering financial inclusion and easing cross-border financial management, we hope to contribute to the success of businesses operating within the AfCFTA framework.
Buzz Times: Dillali has a sturdy partnership with Kaduna Business School, Lhaude Fashion Network, and Y-Combinator-backed Anchor. Can you please tell us how this partnership works?
Ibrahim Bashir: We work with our partners in different sectors with a clear focus on financial literacy capacity development. We have been working closely with Kaduna Business School in the area of digitisation of financial record keeping as a viable option for businesses. With Lhaude Fashion Network, we have been working closely with them in driving financial literacy among upcoming fashion entrepreneurs with the goal in helping them avoid the financial pitfalls early in their business development.
On the technology side, we are collaborating with other industry players like Anchor to offer financial services like banking and payment integration for our users, who in turn will be able to electronically receive payments for their products and services further bringing them into the financial system in Nigeria.
Our partnerships play a pivotal role in expanding our impact and reach. By working together with these esteemed organisations, we can collectively foster a thriving entrepreneurial ecosystem, drive financial inclusion, and empower businesses across various sectors to achieve their full potential.
Buzz Times: You were once an investment consultant with System Trade and Services Limited. In your opinion, how can the President Bola Tinubu-led administration best attract Foreign Direct Investment into the country?
Ibrahim Bashir: I believe it is a collective effort by Federal, State, and Local Governments by having a very clear roadmap as well as an investment policy that guarantees a level playing field for an investor. The governments need to align in policy direction and not work at cross purposes by arbitrarily changing policies particularly as it relates to direct investments, forex, taxes, profit repatriation, and more.
Buzz Times: Do you have a global vision for Dillali as there are businesses with SME status in the West who may need your services?
Ibrahim Bashir: Indeed, Dillali has a global vision, and its services are not limited by geographical boundaries. The platform is accessible and usable in any part of the world, and we already have users in countries such as the UK, US, and China. While Dillali is available internationally, our primary focus and mission lie in empowering African businesses.
Africa, being a continent with immense potential and a thriving SME landscape, is where Dillali has chosen to make a significant impact. We believe that by concentrating our efforts on African-owned businesses, starting with Nigeria, we can address the unique challenges faced by SMEs in this region and provide tailored solutions to support their growth and success.
Buzz Times: Most funding into African Startups comes from abroad, do you fear the possibility of a foreign takeover of African-pioneered startups by these investors from abroad due to the heavy dilution of the stakes of the African Founders?
Ibrahim Bashir: It is understandable to have concerns about the heavy dilution. However, the key lies in how we navigate this dynamic. Instead of fearing foreign takeover, we should view it as an opportunity to build strong partnerships with global investors who can bring valuable expertise, networks, and resources to the table.
Furthermore, we are witnessing a rise in indigenous investors through angel networks, crowdfunding platforms, and local venture capital firms. This trend reflects the growing confidence in African startups and highlights the potential for homegrown investors to play a significant role in shaping the continent's entrepreneurial landscape.
As the startup ecosystem in Africa continues to mature, I am optimistic that in the next 15 years, we will witness a substantial increase in local investors who are well-positioned to match the investment needs of African startups. As long as we continue to foster a supportive and conducive environment for entrepreneurship and innovation, the potential for African-pioneered startups to thrive and retain significant control over their destiny remains strong.
Buzz Times: Thank you for letting us into your private world; we are indeed most grateful!
Ibrahim Bashir: You are welcome.
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